BofA plans contingent income buffered autocallables linked to ETFs

By Sarah Lizee

Olympia, Wash., July 26 – BofA Finance LLC plans to price contingent income buffered autocallable yield notes due Aug. 18, 2022 linked to the lesser performing of the SPDR S&P Biotech ETF and the Technology Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon if each ETF closes at or above its threshold value, 80% of its initial share price, on the observation date for that month. The contingent coupon rate is expected to be 7% per year and will be set at pricing.

Beginning in February 2020, the notes will be automatically called at par if each ETF closes at or above 95% of its initial share price on any quarterly observation date other than the final one.

If the notes are not called and each ETF closes at or above its threshold value, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the lesser-performing ETF declines beyond 20%.

The notes will be guaranteed by Bank of America Corp.

BofA Securities, Inc. is the agent.

The notes will price Aug. 14.

The Cusip number is 09709TUF6.

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